NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

Each integrated project area has about 50.000 inhabitants and is divided into about 250 local development units and about 45 intermediate development units.

Many integrated development project areas include forest and/or natural reserves, most of which are in a deplorable condition. Recovery of degraded forests and natural reserves is not only essential for the protection of ecosystems and bio-diversity, it also offers a way contribute to the financing of integrated-development projects in the areas where the degraded forests and reserves are situated. This is possible where land tenure of forests and natural reserves is known and stable and the rights-holders are members of a given project’s Permanent Cooperative for the on-going management and maintenance of project structures. Work using the preferred methodology is AR-AMS-0004 , version 2, 11 June, 2009, is carried out by the local populations under the local money system set up during an early phase of each integrated development project.

Forests and reserves will often be concentrated in specific parts of integrated development project areas. The populations themselves through the social structures they set up in each area will decide on how the AR-AMS-0004 methodology for the project area is organised. Where there is just one subject forest area or natural reserve, they will usually decide to apply the methodology at the central project level. Where there are several forest areas or natural reserves, they may decide to operate through the intermediate development level administrative units.

AR-AMS-0004 operations are labour intensive. Labour provided under the local money system is well paid. If the AR-AMS-0004 methodology is applied at central level, all of the inhabitants of the project area contribute to the costs of the labour and benefit equally from all CDM income. In that case, the “right to work” on the AR-AMS-0004 project may need to be fairly distributed throughout the integrated development project area. The populations themselves will decide on how to do this. The operation of plant nurseries and some aspects of general forest maintenance can easily be distributed amongst the various administrative levels. For reasons of efficiency, on-going irrigation by hand, on the other hand, may best be left to people living in or near the forest or reserve.

Since the intention of the AR-AMS-0004 applications is to restore forests and reserves to their original condition to encourage bio-diversity there only species traditional to the area concerned will be planted there, irrespective of their rate of growth. Afforestation and reforestation projects are long-term. When executed within the framework of cooperative integrated development projects they are free from capital return requirements. Therefore, forest growth over 50-100 years is acceptable. For this reason, advance trading of CER rights, which greatly reduces the value of the certificates in question ,is not recommended.

Within the target mix of species of trees for a given application, long-term preference will be given to endangered species. In drier areas, short-term preference within the mix of species will be given to those with deeper (usually tap) roots capable of relatively early “independence” from manual watering requirements. Once established, these should provide protection and assist in water husbandry for potentially more exposed shallow-rooted species.

The biggest single problem to the application of AR-AMS-0004 and of all other afforestation and reforestation (AR) initiatives in integrated development project areas is water rather than labour. Water required under AR-AMS-0004 applications is additional to the water used for bamboo-based projects under AR-AMS-0001 described in part 4 of this section below which take first preference because they provide earlier returns and greater occupational opportunities, with a possible future potential of allowance for storage of CO2 in worked bamboo products. AR-AMS-0004 applications also compete for water with projects in settlements under AR-AMS-2 in section 03 below and with projects in marginal areas under section 05 and wastelands under section 07. Integrated development projects allow for rainwater harvesting but not for large-scale irrigation. Small-scale hand-operated drip irrigation techniques can be applied where limited amounts of water can be obtained from shallow hand-dug wells, provided this can be shown to be sustainable and free from effects on the water table. This means why the assistance offered by early planting of deep-rooted (tap-rooted) species is of such great importance.

AR-AMS-0004 contains default figures for various types of forest. Each application will be specifically designed to provide carbon sinks for up to 15.000 tonnes of CO2. Where possible, potential CO2 sinks may be increased (and the maximum benefit capped at maturity) to provide for higher income during initial slow growth periods. 15.000 tons of CO2 @ about € 14 per tonne {as at 14 November 2009] would produce gross CDM income of up to € 210.000 a year for up to 50 + years, depending on the species planted and their numbers. There are also wide variations in the average annual increment in tonnes of dry wood mass per hectare according to the climatic zone where the forest is situated. Income during the first 10 years of growth will usually be low. It will then increase during the main growth phase of the tree and then ease off again as the tree reaches its maturity. Once the trees have reached their maturity, increase of carbon storage stops. Some default indications are provided in Biomass default tables in annex 3A.1 of the publications Good Practice Guidance for Land Use, Land-use Change and Forestry, Institute for Global Environmental Strategies (IGES) for the Intergovernmental Panel on Climate Change (IPCC), Kamiyamaguchi, 2003.

Each AR-AMS-0004 application will be different from one project to the other. The average annual income should be more or less the same for each one. The area planted and the number of trees needed to achieve the annual income will vary from case to case. An average rate of increase of about 3 tonnes of dry matter per hectare per year produces about 5 tonnes of CO2 sinks. On that basis, 15.000 tonnes of carbon CO2 sinks would involve a forest area of 3.000 hectares. Supposing a typical tree density of one tree per 25m2 ( 5m. x 5m.), 400 trees per hectare would be needed. Supposing an area of 3.000 hectares, 1.200.000 trees would need to be planted and maintained until they are self-sustaining. Provided the minimum tree crown coverage prescribed by the national definition of forest is respected, a larger area can be planted, with fewer trees per hectare. Since this offers more space for natural forest accretion, this option should be followed where possible. Extensions of this type to forest areas do not alter the economic aspects of the small-scale CDM project for which CO2 income is limited to 15.000 CO2.

Protection of plantations in early growth phases is a second major problem to be faced. A plantation area of 3.000 hectares covers about 30 km square (5.5 km x 5.5 km) . Provided equipment can be safely guarded, electric fences operating on photovoltaic power (PV) may offer an appropriate solution to this problem.

Planting can be staggered over a number of years. Assume it is not. Hand-fed drip irrigation for 1.200.000 young trees in dry seasons requires one minute per tree, one person can manage 60 trees an hour or 480 trees per day. Assuming a five-day working week and a cycle of one watering per week, each person can handle 2.400 trees. This means that up to 500 people could be needed to look after the 1.200.000 young plants in dry seasons during the early years. Assuming dry seasons last 8 months or 35 weeks, the total number of hours worked could therefore be 35 weeks x 40 hours per week x 500 people, or 700.000 hours per year over the first six or seven years. 700.000 hours’ work will involve local money costs amounting to 700.000 hours x 10 local currency units (this is the average expected working rate under the local money systems), or 7.000.000 local currency units per year. Assuming there are 35.000 adults in the integrated development project area concerned, about 1.5% of the adult population would be involved in the project, which would involve an annual cost to each of the 35.000 adults adult of 200 local currency units, equal to twenty hours’ work . This is work for two and a half days per adult per year during the critical growing period. These are the “costs” the local populations need to agree to.

Where this undertaking is considered too high, the project can be introduced in phases.

Total gross CDM income from each project could be up to € 10.500.000 (expressed in 2010 €s) or more over a period of fifty years, less the costs charged by the nominated the Designated Operational Entity (DOE) for its services. Assuming total forest husbandry costs to be the equivalent of twelve years’ peak requirements, total work is 700.000 hours x 12 years, or 8.400.000 hours’ work. This produces an hourly formal money (€s) income of about € 1.25 per hour, less the DOE validation costs. In most developing countries today, this would be considered a very satisfactory return on labour. The CDM income is nearly three times the initial capital requirement of projects in non-pastoralist areas and double the initial capital requirement of projects in pastoralist areas.

Income for each project area is dedicated to the repayment of the initial costs of the integrated development project in question. After repayment of initial capital costs, ongoing income is distributed equally amongst the local populations, who are all automatically members of the Local Cooperative for the on-going management and maintenance of the project structures.

As mentioned, total gross project income could be up to € 10.500.000 (expressed in 2010 €s) or more per project. Assuming the execution of up to 2500 integrated development projects for West Africa (excluding Nigeria and Ghana) the scheme would produce at least € 28.125.000.000. General application of the concepts in Nigeria would deliver roughly the same benefits. Poor countries do not pay registration and issuance costs, but the amounts are subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Assuming an area of 3000 hectares of reforestation per project area, the area involved for 2500 projects in West Africa is 7.500.000 hectares or 75.000 km2.

The proposed demonstration projects can be repeated as and when labour and water supplies become available in each integrated development project area.

Menu for : 09. CDM funding indications for the selected applications and methodologies.

09-01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

09-02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species.

09.03. Afforestation activities in settlements as defined for the distributed planting of fruit and nut trees and similar.

09-04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands.

09-05. Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

09-06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

09-07. Demonstration afforestation and/or reforestation projects on lands having low inherent potential to support living biomass.

09-08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

09-09. Recycling of human waste to avoid the use of industrial fertilisers.

09-10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas.

09-11. Replacement of kerosene lamps, incandescent light bulbs, and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass).